WAM Income Maximiser Limited · ASX:WMX
WAM Income Maximiser — Wilson Asset Management — Investor Presentation (November 2016)
38 slides from WAM Income Maximiser's investor presentation, November 2016
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Slide 2: November 2016 Shareholder Presentation
November 2016 Shareholder Presentation
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by MAM Pty Ltd and Wilson Asset Management (International) Pty Ltd (Wilson Asset Management) for use in conjunction with a verbal presentation and should be read in that context. This presentation Information for the graphs, charts and quoted indices co
Slide 4: Agenda
Agenda 1. Wilson Asset Management 3. Investment portfolio and our listed investment companies – What worked – What didn’t work 2. Market and investment insights – What we like – Market overview and outlook – Investment themes and trends 4. Questions Page 4
Slide 5: About us
About us 1 Page 5
Slide 6: Investing in opportunities. For you. For good.
About us Investing in opportunities. For you. For good. 1 Page 6
Slide 7: Our team
Our team Geoff Wilson Kate Thorley Chris Stott Matthew Haupt Chairman Chief Executive Officer Chief Investment Officer Portfolio Manager & Portfolio Manager & Portfolio Manager Martin Hickson Tobias Yao John Ayoub Oscar Oberg Senior Equity Analyst Senior Equity Analyst Senior Equity Analyst Equity A
Slide 8: How we invest
Wilson Asset Management How we invest Investment focus ASX listed companies ASX top 200 listed companies Research-driven Identifying undervalued growth companies W|A|M Research Integrated Exposure to both research and market driven strategies W|A|M Capital W|A|M Leaders Market-driven Exploiting shor
Slide 9: WAM Capital performance and dividend yield
Pre-tax net tangible assets One-year total shareholder return 197.56c 23.6% Fully franked dividend yield* Performance (p.a. since August 1999) 6.4% 18.2% As at 31 October 2016 Page 9 *As at 14 November 2016
Slide 10: WAM Leaders NTA, gross assets and share price
Pre-tax net tangible assets Gross assets 107.77c $388.6m Share price* Option price* $1.115 $0.039 As at 31 October 2016 Page 10 *As at 14 November 2016
Slide 11: WAM Research performance and dividend yield
Pre-tax net tangible assets One-year total shareholder return 129.17c 28.4% Fully franked dividend yield* Performance (p.a. since July 2010) 5.4% 21.0% As at 31 October 2016 Page 11 *As at 14 November 2016
Slide 12: WAM Active performance and dividend yield
Pre-tax net tangible assets One-year total shareholder return 105.14c 26.5% Fully franked dividend yield* Performance (p.a. since January 2008) 4.4% 12.9% As at 31 October 2016 Page 12 *As at 14 November 2016
Slide 13: Market and investment insights
Market and investment insights 2 Page 13
Slide 14: Market and investment insights
Market and investment insights 2 Page 14
Slide 15: Market outlook
Wilson Asset Management Market outlook Page 15
Slide 16: Is a correction coming?
The Australian equity market Is a correction coming? Page 16
Slide 17: Is a correction coming?
The Australian equity market Is a correction coming? Signs of economic strength are returning… … but are not strong enough for the RBA to raise rates – yet … when it does, equities could come under pressure Valuations remain elevated given the growth outlook Page 17
Slide 18: Will small caps continue to outperform?
The Australian equity market Will small caps continue to outperform? Page 18
Slide 19: Small caps relative performance
The Australian equity market Will small caps continue to outperform? S&P/ASX 100 S&P/ASX Small Ordinaries Relative performance 1900 1900 2013 2014 2015 2016 Source: Goldman Sachs Page 19
Slide 20: Australian housing has peaked
The Australian economy Australian housing has peaked Page 20
Slide 21: Australian housing approvals
The Australian economy Australian housing has peaked Housing Australian housing approvals approvals 21000 18500 16000 13500 11000 8500 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 Source: Australian Bureau of Statistics Page 21
Slide 22: The era of cheap money is ending
The global economy The era of cheap money is ending Page 22
Slide 23: 10-year government bond rates
The global economy The era of cheap money is ending 10-year government bond rates % Centrals banks have attempted 8 to stimulate the economy post 7 6 GFC with monetary policy 5 Printing money to provide liquidity 4 3 Lowering interest rates 2 1 0 Causing significant overvaluation -1 in equity prices
Slide 24: Outcome of the US election
The global economy Outcome of the US election Page 24
Slide 25: Outcome of the US election
The global economy Outcome of the US election Uncertainty on policy decisions and execution; slim Republican majority Tax reform and infrastructure building could create fiscal stimulus Trade protectionism would have negative impacts US economic indicators and company earnings are positive overall P
Slide 26: Investment themes and trends
Investment themes and trends Page 26
Slide 27: The rise of self managed super funds
01 The rise of self managed super funds Page 27
Slide 28: The rise of self managed super funds
01 The rise of self managed super funds 1/3 of all superannuation assets are held in SMSFs $622bn of assets under management 16% of the market cap of the ASX is owned by SMSFs Investment exposure: Source: Credit Suisse Page 28
Slide 29: Cashless society and online shopping
02 Cashless society and online shopping Page 29
Slide 30: Cashless society and online shopping
02 Cashless society and online shopping Integrated the best retailers neither exclusively online or offline Decelerated rate of growth in online shopping Transition from bricks-and-mortar to clicks-and-mortar Payments technology bring convenience and efficiency to electronic transactions Investment
Slide 31: Top holdings
Top holdings Company ASX Code Owned by Eclipx Group Limited ECX WAM, WLE, WAX Nick Scali Limited NCK WAM, WAX Orora Limited ORA WLE Reliance Worldwide Corporation (Aust) Limited RWC WLE Ardent Leisure Group AAD WAM, WLE, WAX Aristocrat Leisure Limited ALL WAM, WLE, WAA Helloworld Limited HLO WAM, WA
Slide 32: Investment portfolio
Investment portfolio 3 Page 32
Slide 33: What worked
What worked Sold out average $1.94 Mayne Pharma (ASX: MYX) Why it rated $2.10 – Highly accretive acquisition $1.90 – Growth potential $1.70 – Pipeline of drugs awaiting FDA approval $1.50 Started buying at $1.30 $0.62 Why it worked $1.10 – Successful execution on acquisition $0.90 – New drugs approv
Slide 34: What didn't work
What didn’t work The Reject Shop (ASX: TRS) $17.00 Sold out average $9.27 Why it rated $15.00 – Appointment of CEO Ross Sudano – Cost reducing strategies $13.00 Why it didn’t work $11.00 Started buying at $5.87 – Impacted by price competition $9.00 – Sales growth disappointing – Share price has cont
Slide 35: What we like: Armidale Investment Corporation
What we like Armidale Investment Corporation (ASX:AIK) $0.18 Background $0.17 – Integrated commercial finance company $0.16 – $42 billion industry $0.15 Started buying at $0.11 Catalysts $0.14 – Simplifying corporate structure to a tax $0.13 consolidated group $0.12 – Transition to operating company
Slide 36: What we like: Nick Scali
What we like Nick Scali (ASX: NCK) $6.00 Background – Furniture retailer with 42 stores $5.50 – Market cap $450 million Started buying at – Block line purchased at a discount $5.00 $3.80 Catalysts $4.50 – Acquisitions overseas – Earning upgrades $4.00 – Continued Australian market share gains $3.50
Slide 37: Questions
Questions 4 Page 37
Slide 38: Get in touch
Get in touch [email protected] Telephone. +61 2 9247 6755 Level 11, 139 Macquarie Street Sydney NSW 2000 GPO Box 4658, Sydney NSW 2001
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